Starbucks is making significant changes to its US operations, cutting 1,100 corporate jobs and simplifying its menu in an effort to address declining sales and improve efficiency.
The company announced that it will reduce its menu by nearly 30% over the next year, with the first round of removals set to take effect on March 4.
Among the drinks being discontinued are the Royal English Breakfast Latte, White Hot Chocolate, and several Frappuccino varieties, including the Espresso, Java Chip, and Caffè Vanilla Frappuccinos. Starbucks explained that the items being removed are either infrequently ordered, complex to prepare, or similar to other offerings.
The move comes as Starbucks faces a sustained drop in US sales, with transactions at stores open for at least a year falling 8% in the most recent quarter. CEO Brian Niccol, who took over in 2023 after leading Chipotle, has emphasized a return to Starbucks’ core identity as a coffee-first company.
“We’re simplifying our menu to focus on fewer, more popular items, executed with excellence,” the company said in a statement.
It hopes that reducing menu complexity will shorten wait times, improve quality and consistency, and enhance the overall customer experience.
The 1,100 job cuts will primarily affect corporate “support partner” roles and will not impact store-level employees. Starbucks is also eliminating several hundred open and unfilled positions as part of its restructuring efforts.
Niccol stated that the decision aims to increase efficiency, remove duplication, and streamline company operations. However, Starbucks continues to face broader challenges, including customer concerns over high prices, growing competition, and ongoing labor disputes related to unionization efforts.
While the company is trimming its menu, it is also introducing new items to align with customer trends. Starbucks recently added a Cortado to its lineup and launched seasonal drinks like Blackberry Sage Refreshers. For spring, it plans to reintroduce Lavender beverages and debut new offerings like the Iced Cherry Chai and Jalapeño Chicken Pocket.
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